“AS THE POPULATIONAGES, THE DEMAND FOR LONG-TERM CARE AND THE COSTS OF PROVIDING THAT CAREWILL INCREASE. ”
2. The crushing costs of their loved one’s long-term care needs (average expenses range from $3,000-$15,000 monthly). 3. The daunting reality of selling an outdated home filled with furniture, knick-knacks, and ‘stuff’. This is where we come in as real estate investors. We are uniquely positioned to offer a solution that eases the burden of these truths for families. Over the next 10 years, the residential real estate indus- try will provide investors with the perfect opportunity to be problem solvers for millions of families who need to transition their loved ones out of their homes and into care communities as quickly as possi - ble. For many families, a real estate investor who buys their outdated home as-is (with everything inside) becomes the one person who is able to make all the difference in getting their loved one into care. In this sense, residential real estate investors can help to alleviate an enormous amount of stress for families in this situation. As the population ages, the demand for long-term care and the costs of providing that care will increase. With the cost of long-term care currently rising faster than the rate of inflation, research shows that over half of middle-income Americans over 75 will be unable to
physically and/or financially unable to be their caregivers. In other words, tens of millions of Baby Boomers who need long-term care over the next few years will be downsizing or moving into senior living communities. Is this impending shift significant to us as real estate investors? The simple answer is yes, and it’s a big- ger deal than you can imagine. Real estate investors can provide an invalu - able service to not only the senior homeowner, but also to their families. More often than not, seniors need to transition into assisted living communities after suffering from an unexpected medical crisis. This often happens quickly, and the fam - ily is usually never prepared for it. Suddenly, the senior’s adult chil - dren—who may be in their 50s or 60s and oftentimes live hundreds of miles away—are left to deal with an outdated house that their parents likely lived in for decades. A common scenario is that their mother is wid - owed and has been maintaining the house on her own for many years. Whatever the case may be, the house likely needs major maintenance and rehabbing. In the coming years, countless families will be left to grapple with some hard truths: 1. The fact that their loved one needs to move out of the family home and into a senior living community.
afford it in 10 years. As real estate investors, our value to families is multi-faceted. Oftentimes, selling the family home is a need, not a choice, when a family is faced with the expenses of their loved-one’s long-term care. When families suddenly need to sell a loved-one’s house, they are likely going through one of the most emotionally charged and difficult times of their life. People who are concerned about a loved-one’s care and quality of life have no interest in dealing with the logistics of hiring contractors to make house repairs, cleaning the house out, finding a Realtor, and showing the home. As residential real estate investors, we need to be recognizing the end - less opportunities in front of us to not only grow our businesses, but also to provide a service that helps families when they need it the most. •
Ben Rao is an author, serial entrepreneur, business coach and real estate investor with nearly 20 years of experience in technology and real
estate investment. He is a partner in multiple national companies that service the senior industry and the author of Paying For Long-Term Care: The Essential Guide to Understanding and Funding Senior Care. Ben is also the co-founder of Mom’s House, an innovative residential real estate investment platform that assists residential real estate investors in connecting with the families of seniors transitioning into long-term care. To learn more, visit www.momshouse.com.
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